SoFi Technologies Posts Upbeat Q4 Results; Shares Pop 18.2%

Online personal finance company SoFi Technologies, Inc. (NASDAQ:SOFI) has reported better-than-expected results for the quarter ended December 31, 2021. Solid revenue growth drove the overall upbeat results of the company.

Following the earnings, shares of the company zoomed 18.2% to close at $13.24 in Tuesday’s extended trading session.

Revenue & Earnings

SoFi Technologies reported quarterly revenues of roughly $286 million, up 67% year-over-year. The figure also surpassed the consensus estimate of $280.44 million.

The company’s loss per share for the quarter stood at $0.15, narrower than last year’s loss of $1.85 per share and the consensus loss estimate of $0.17 per share.

Meanwhile, SoFi Technologies’ adjusted EBITDA declined 61% from the prior year to $4.59 million.

Further, the company added 906,000 total products, which denotes a growth of 105% from the previous year.

CEO’s Comments

The CEO of SoFi Technologies, Anthony Noto, said, “We hit new highs across our key financial and operating metrics in the fourth quarter, finishing 2021 with record annual results. Adjusted net revenue of $280 million was another quarterly record for us, up 54% year-over-year and up sequentially, even with the unexpected extension of the federal student loan payment moratorium in late December. We exceeded $1 billion in annual adjusted net revenue for the first time. We also delivered fourth quarter adjusted EBITDA of $5 million — our sixth consecutive positive quarter — resulting in positive full-year adjusted EBITDA of $30 million.”

Outlook

The company expects to post revenues of $1.57 billion for full-year 2022. The consensus estimate for the same stands at $1.45 billion.

Price Target

On March 1, Mizuho Securities analyst Dan Dolev reiterated a Buy rating on the stock with a price target of $17, which implies upside potential of 51.8% from current levels.

Overall, the Wall Street community is cautiously optimistic about the stock with a Moderate Buy consensus rating based on 8 Buys and 3 Holds. The average SoFi Technologies price target of $18.50 implies that the stock has upside potential of 65.2% from current levels. Shares have declined 40.3% over the past year.

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